Superstorm Sandy, political climate challenge New York's economy

GLENS FALLS -- Hurricane Sandy and an uncertain political climate pose major concerns for New York's economy, a state business leader said Thursday.

Two Senate races are still undecided that could influence the fate of pro-business legislation, and hurricane damage has left the state facing the possibility of a $1 billion budget shortfall.

The Business Council of New York State President and CEO Heather Briccetti addressed these and other topics with local government and business leaders at Crandall Public Library.

"The hurricane has got them (state officials) in scramble mode," she said. "He (Gov. Andrew Cuomo) cannot increase taxes right now. Our tax climate and our business climate is so poor ... they really don't want to make it worse."

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Also, somewhat cool relations between Cuomo and President Barack Obama could limit the amount of federal aid coming to New York for infrastructure repairs. Right after the storm, Obama was shown surveying New Jersey's damage with prominent Republican Gov. Chris Christie, an image that might have swayed some moderate voters in this month's presidential election.

Cuomo and Obama, both Democrats, didn't share a similar exchange prior to the president's visit to New York City on Thursday.

"I don't think the governor has felt warm and fuzzy toward the president during the whole post-hurricane period," said Briccetti, a former Senate and Assembly staffer.

The governor will need creative measures to close the budget gap, because the last thing he wants is a tax increase, which would hinder his own presidential ambitions four years from now. It is widely believed that Cuomo's ultimate goal is the White House.

Consolidating state agencies is one possible way to save money, Briccetti said. For example, the state Racing and Wagering Board and state Lottery Division are scheduled to merge early next year and become known as the New York State Gaming Commission.

Briccetti credited Cuomo's new regional economic development approach for spurring business growth and investment throughout the state. However, she said there is still room for improvement in the Legislature, particularly in the Democrat-controlled Assembly, which has no pro-business caucus.

Two years ago, 30 Democrats voted against the business community 100 percent of the time. Since Cuomo took office, there has been a dramatic turnaround, she said.

"Leadership at the top matters," she said.

The outcome of two races in the 63-seat Senate could determine who controls that body and the type of measures that get adopted. "It determines what gets to the floor and what gets voted on," Briccetti said. "It could be difficult to get fiscal restraint items through (if Republicans lose control). Now more than ever, people need to be involved. State government affects your business every day."